Virtual token increased by 183% in April due to increasing institutional demand

• Institutional interest drives the virtual rally.
• Chaikin Money Flow signals strong capital inflows.
• The price pattern shows a bullish formation.

While most digital assets had trouble finding a direction in April, virtual has turned out to be one of the few cryptocurrencies that recorded significant profits.

The token has increased by 183 % since April 1 and is therefore the best cutting asset in the crypto area in a month that was characterized by a subdued mood and low volatility.

With an increase of 22 % in the last 24 hours alone, investors' attention has been paid to the technical indicators, which indicate that there could be further upward trend in sight.

The rally comes against the background of a more comprehensive shift in intelligent capital allocation, since institutional buyers apparently switch into mid-cap-alcohol with strong momentum and liquidity.

Institutional interest drives the virtual rally

The upward trend of virtual began on April 22nd and has been showing a steady price increase since then.

One of the most remarkable developments was the increase in the Smart Money Index (SMI), which is currently 3.07

The SMI pursues institutional trade patterns by concentrating on price movements during the opening and final hours of every trading day.

An increasing SMI in connection with an increasing price usually signals accumulation by professional or large investors.

This correlation suggests that "clever money" positions itself on long-term profits and the weight of virtual’s last momentum reinforced.

on-chain data also show that the number of whale addresses that hold virtual has risen since mid-April, which provides additional evidence for institutional accumulation.

Chaikin Money Flow signals strong capital inflows

A further confirmation of the bullish sentiment is the chaikin Money Flow (CMF) of virtual, which is still in a positive area at 0.25 and shows an upward trend.

The CMF measures the volume-weighted average of accumulation and distribution over a certain period of time and helps dealers to evaluate the strength behind a price movement.

A positive and increasing CMF value reflects strong purchase pressure and sustainable capital inflows.

Together with the increased SMI increases this trend that the current rally is supported by virtual by increasing liquidity and the trust of investors.

analysts that pursue short-term trends, also increased activity in the decentralized pairs of stock markets from virtual, whereby the trading volume exceeded $ 20 million in the last week.

This indicates a participation of both individual and institutional investors.

Price pattern shows a bullish formation

Technically speaking, virtual has been traded within a rising parallel channel since its outbreak on April 22nd.

This formation, which is defined by constant higher highs and higher lows within two trend lines inclined upwards, is generally considered a bullish signal.

As long as the token remains within this pattern, the current trend is expected to continue.

If the momentum stops and the demand remains high, the price of virtual could increase and the upper resistance limit could be tested near $ 2.26

That would be a further increase of 25 % from the current level.

However, if the profit taking potential increases and the support of the token breaks $ 1.55 (£ 1.24), the bullish structure could fail.

In this case the price could fall towards the area of ​​$ 0.96, where earlier demand occurred again.

Short-term sentiment remains bullish

Despite the weakness of the broader market, the sentiment around virtual remains positive at short notice due to favorable on-chain metrics and increased institutional interest.

The strong performance of the token in April has initiated discussions about whether it can maintain the momentum in May, especially since the volatility of the old coins returns.

Technical indicators are currently promoting a continuation of the upward trend, although every macroeconomic shock or sudden risk auction in the crypto sector could be disadvantageous risks.

Market participants observe the upcoming economic data publications that could influence the liquidity of risk systems, including virtual.